The Department of Taxation under the Ministry of Finance has recently issued a document responding to an individual's inquiry regarding tax policies applicable to asset leasing activities, individual business households, and the responsibilities of declaring and paying taxes as the self-declaration and self-payment mechanism is set to be implemented starting from 2026.
A representative from the department stated that an individual's tax obligations for asset leasing activities are regulated by the Value Added Tax Law No. 48/2024/QH15, along with detailed guidelines on value-added tax, personal income tax, and tax management for business households and individual businesses as outlined in Circular No. 40/2021/TT-BTC and Circular No. 100/2021/TT-BTC of the Ministry of Finance (amending and supplementing certain provisions of Circular No. 40/2021/TT-BTC).
Regarding the taxable turnover threshold, according to the Department Of Taxation, although not subject to value added tax and personal income tax, households and individuals doing business with revenue of less than VND100 million ($3,500) per year must still fulfill the obligation to declare and submit tax records according to regulations.
However, starting from January 1, 2026, the non-taxable revenue threshold will be raised to VND200 million ($7,100) per year according to new regulations of the 2024 Law on Value Added Tax.
The Department Of Taxation emphasized that although not subject to value added tax and not having to pay personal income tax, business households and individuals are still responsible for accurately and honestly declaring taxes and submitting documents on time.
Accordingly, tax declaration and submission are carried out according to the instructions in Articles 11 and 13 of Circular No. 40/2021/TT-BTC.
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